Corporate - Branch income

Last reviewed - 04 March 2024

Distributed or retained branch profits are taxed at a rate between 22% and 28% (see the Taxes on corporate income section). Further taxes are payable when profits are remitted to headquarters abroad. 

Countries and territories considered as tax havens by tax authorities

Besides the tax haven list published by the tax authorities shown below, ‘low-tax jurisdictions’ shall be subject to the same tax treatment. ‘Low-tax jurisdictions’ are defined as a territory where the effective rate of income tax or taxes of an identical or similar nature is less than 60% of the applicable rate in Ecuador. Additional considerations are also taken by the tax authorities for determination of low-tax jurisdictions/preferential tax regimes.

American Samoa Cocos (Keeling)s Marshall Islands Saint Vincent and the Grenadines
Andorra Cook Islands Mauritius Santa Elena
Angola Curaçao Monaco Seychelles
Anguilla Djibouti Montserrat (UK) Solomon Islands
Antigua and Barbuda Dominica, Commonwealth of Myanmar Sri Lanka
Aruba French Polynesia Nauru Swaziland, Kingdom of
Ascension Island Granada Nigeria Tokelau
Azores Islands Greenland Niue Tonga
Bahamas Guam Norfolk Islands Trinidad and Tobago
Bahrain Guyana Oman Tristan Da Cunha
Barbados Hong Kong Palau Tunisia
Belize Jordan Panama Turks and Caicos Islands
Bermuda Kiribati Pitcairn Tuvalu
Bonaire, Saba, and St. Eustatius Kuwait Puerto Rico United Arab Emirates
Brunei Darussalam Labuan Qeshm Islands Vanuatu
Cabo Verde Liberia Saint Kitts and Nevis Islands Virgin Islands (British)
Campione D´italia Macao Saint Lucia Virgin Islands of the United States
Cayman Islands Madeira (Portugal) Saint Martin Western Samoa
Christmas Islands Maldives Saint Pierre and Miquelon Yemen

Certain tax regimes from Bulgaria, Estonia, Macedonia, Montenegro, Serbia, and the United States may be considered preferential tax regimes.